KARACHI: The interbank foreign exchange market witnessed a positive shift on Wednesday as the Pakistani Rupee (PKR) gained 7 paisas against the US Dollar.
Lower demand from importers contributed to the strengthening of the local currency.
The rupee closed at Rs138.58 to the dollar, showing improvement from the previous day’s closing rate of Rs138.65 in the interbank foreign exchange market. The trading day began within the range of Rs138.60 and Rs138.65, reflecting stability in the early hours of the market.
Throughout the trading session, the exchange rate fluctuated, reaching a day high of Rs138.65 and a low of Rs138.57. The market eventually settled at Rs138.58, marking a 7 paisas gain in the rupee’s value against the dollar.
The positive momentum in the interbank market also influenced the exchange rates in the open market, where the local currency recorded a gain of 10 paisas. The buying and selling of the dollar were reported at Rs138.20 and Rs138.70, respectively. This is a notable improvement from the previous day’s closing rates of Rs138.30 and Rs138.80 in the cash-free market.
Analysts attribute the appreciation of the Pakistani Rupee to lower demand from importers, signaling a potential easing of pressure on the foreign exchange reserves. The positive performance in the interbank market is likely to have a ripple effect on the broader economic landscape, impacting the cost of imported goods and overall inflation rates.
While this gain in the value of the rupee is a positive development, market observers remain vigilant, acknowledging that currency markets can be subject to fluctuations based on various economic factors. Continued monitoring of the foreign exchange market and prudent fiscal policies will be essential to sustaining the positive momentum and ensuring the stability of the Pakistani Rupee in the coming days.
As the trading week progresses, market participants will be closely watching for any further developments in the foreign exchange market, keeping an eye on both domestic and international factors that may influence currency movements.
